Expense reports are one of the most exasperating aspects of running an organization, but they are also a necessity. As a company grows, so do the number of expense reports, and it goes from being a mild irritation to a sink hole that costs you a huge amount of money and time.
Auditors in finance teams that need to audit each individual report face numerous challenges in every stage of the reporting process, and this in turn translates to inefficiency in both their work, as well as the employees who are filing those reports, and the managers who need to review them.
5 PAIN-POINTS THAT MAKE AUDITING EXPENSE REPORTS DIFFICULT
1. Manual matching of expense reports with receipts
With the high number of expense reports that are being filed, auditors find it near impossible to sit down and manually match each receipt to their respective expense reports.
Businesses say that 60-80% of reports are not fully reviewed – with an average of one in five expense reports having at least one policy non-compliant expense.
2. Constant follow up with employees over errors in reports
Now, if by some miracle your accountants are actually able to manually review every single expense report, this brings to the fore our next issue: Expense reports that need to be changed.
Whenever there are any issues with an expense report such as policy non-compliant expenses, missing receipts, duplicate expenses, etc. the auditor will have to personally approach the person who filed the report, and tell them what they did wrong, and how to fix it.
A massive waste of time for everyone involved, wouldn’t you agree?
3. Expense policies that are impossible to read and decipher
A lot of organizations do not put much effort into creating a comprehensive expense policy, if they bother with the creation of one at all, and this in turn causes a lot of confusion, as people no longer know exactly what is compliant with company policy.
This leads to the same mistakes being made over and over again, causing a significant waste of both time and money, assuming these mistakes are actually caught when the auditors are drowning in expense reports.
4. End-of the month overload of expense reports
As more and more expense reports get added to the list of reports pending audit, people start running out of time to complete their other tasks, and see to their other responsibilities. And, on the flip side, employees are wasting a lot of time filing expense reports, correcting incorrect expense reports, instead of concentrating on the job they were actually hired for.
It doesn’t make sense when people companies have hired to fulfil vital business requirements, are stuck on expense reports. It ends up costing a pretty penny, and saps everyone’s morale.
5. Manual processes that aren’t scalable
The goal of every business entity is to achieve and sustain growth on a consistent basis. And, as organizations grow, and start expanding their on their workforce, there is also an increase in the number of expense reports that are being filed.
Manual processes just cannot support rapid expansion, as it is much too inefficient for auditors to manually process the growing number of expense reports this growth will bring. Finance teams need to be better equipped in order to match the scaling ambitions of organizations.
Expense reports are one of the most exasperating aspects of running an organization, but they are also a necessity. As a company grows, so do the number of expense reports